WESCO International, Inc.

Wesco reported third-quarter organic sales up 17% to $7.2 billion, adjusted EBITDA up 33% to a record $562 million, adjusted EBITDA margin of 7.8% (up about 100 basis points year over year), gross margin of 21.7%, and adjusted EPS up 47% year over year to a record $5.77. Segment sales were CSS up 22% to $2.9 billion, EES up 18% to $2.8 billion, and UBS up 6% to $1.5 billion. Free cash flow was $184 million, net leverage improved to 2.8x from 3.4x at year-end, and available liquidity was over $2 billion. For full year 2026, the company now expects organic sales growth of 13% to 14%, reported sales growth of 14% to 15%, sales of approximately $26.8 billion to $27 billion, adjusted EBITDA margin of approximately 7.2%, and adjusted EPS of $18 to $18.50. For Q4, management expects low to mid-teens reported sales growth and about 50 basis points of adjusted EBITDA margin expansion year over year.

John Engel framed the quarter as evidence that Wesco’s portfolio mix is shifting toward a higher-growth profile, with momentum broadening beyond data centers into the rest of the business. He emphasized the company’s backlog strength, customer commitments and One Wesco cross-selling strategy, and said Wesco is “bullish” on continuing to outperform into 2026 and 2027. He also highlighted progress on the digital transformation and said the company now sees at least 100 basis points of EBITDA margin benefit from that effort, with upside possible.

Neel Dev said the quarter delivered record sales and profitability, driven by 17% organic growth, strong volume, and operating leverage. He cited gross margin at 21.7%, SG&A improving about 50 basis points, and EBITDA margin expanding to 7.8% as productivity and disciplined cost management offset continued investment in capabilities. He also highlighted $184 million of free cash flow, net working capital at about 20% of trailing 12-month sales, leverage down to 2.8x, and over $2 billion of liquidity. Despite higher growth and working capital needs, he said free cash flow guidance for the year is being maintained.

Analysts focused on whether the Q4 guide embeds conservatism in margins, and management said the outlook reflects normal seasonality, holidays, weather risk, one fewer business day sequentially and continued investment in the business, but nothing structural. Questions also centered on 2027 growth, with management declining to fully quantify the year yet while reiterating strong momentum, mid- to high single-digit sales growth expectations, and continued margin expansion. Several analysts probed data center timing and backlog visibility; management said there is a meaningful lag between hyperscaler CapEx announcements and Wesco revenue recognition, and that backlog includes a mix ranging from near-term to one- to two-year projects.